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By Bay Estate Agents
A perfect storm of lack of supply and the cost of living crisis has resulted in a more than 16% rental hike in some parts of Wales. In many cases, landlords have been forced to raise rents to cover their own mortgage rate rises and increasing service and maintenance charges. How would you react to rent controls for Swansea properties?
Landlords have reacted angrily to a proposed rent freeze or cap in Wales. The NRLA says any form of rent control would be “a disaster” for tenants at a time when many are struggling to afford housing costs.
A Welsh Government green paper suggests a limit on rent increases may help tenants as the cost of living crisis takes hold. Minister Julie James says: “In the grips of a cost of living crisis I know there is more we can do.”
“For those on low incomes we want to explore opportunities to use the levers available to us to secure greater support that will make renting a home more affordable.”
However, the NRLA is calling on landlords in Wales to make their voices heard and respond to the green paper proposals, which could lead to a white paper and then a bill that would need the approval of the Welsh Parliament.
Ben Beadle, CEO at NRLA says: “Let’s be clear, rent controls would serve only to decimate the sector further and would be a disaster for tenants, when so many are already struggling to find a place to rent.”
It could risk further driving landlords our of the sector, reducing the supply of private rental accommodation still further.
Beadle called on the Government to improve housing supply that will reduce costs for renters.
In Scotland, the Government dropped its planned rent freeze from April in a major U-turn, replacing it with a 3% rent cap for six months, with higher increases up to 6% allowed in exceptional cases.
Timothy Douglas, Head of Policy and Campaigns at Propertymark says: “We do not agree with rent controls as they disincentivise investment and lead to low stock levels and reduced property standards. We have also seen that they inflate advertised rents which is most recently evident in Scotland.”
“The failures of rent controls have also been evidenced time after time again across Europe, and the United States.”
“We believe that there must be a clear focus on introducing measures that satisfy tenant demand and ease landlord costs in order to increase the number of properties to rent and buy across Wales.”
At Bay Estate & Letting Agents, we really know the Swansea property market. We're local and we'll gladly share our knowhow and experience with honest advice that will be just right for you. So, whether you're buying, selling or letting in Swansea, get in touch. We're here to help.